SLIDES NOTES

Slide 1: Cliental Problem

Client problem:
Nestle is one of the largest FMCG organisation throughout the world with significant market
share in the Baby food manufacturing. Its tagline is Good Food Good Life and its mission is
to Promoting Infant Formula Instead Of Breast Milk with Lacklustre Labelling. Recently is
facing a boycotting through the US and European market, because of maintaining proper
quality in the baby food products which it is trying to manufacture as substitute of breast milk
baby foods. Though it is now doing great business in the LDC countries but it is still facing
problems there and facing strong monitoring by the International Baby Food Action Network.
For solving the client problems, Nestle needs to design well-designed strategy which will
enable it to overcome this problem by creating alternative way to tackle the situation and
regaining the old market image by rebuilding the customers trust and reliability on the baby
foods again. Specific and fixed strategy and action plan are needed to understand the situation
more closely and designing plan accordingly.

Slide 2: Setting objectives

For designing and implementing any plan, it is must for the organisations to understand the
market better and then sets objective to accomplish the desired position in the market. In this
presentation, I has also got some objectives to design the whole presentation on the basis of
the Nestle. The objectives of mine are given below according to the Nestle.

affecting Nestls market share

creating awareness about the misconception
Upsetting customer relationship
Losing its competitive edge
Demining brand reputation
Increasing customer loyalty
Upholding brand image

These objectives are designed on the basis of my knowledge, understanding and analysis of
the current market share which can help me to understand the situation. Besides, the
perspective of Nestle is considered and how can it sustain current growth in the LDC
countries as an alternative of breast milk for the infant.

Slide 3: Evaluating Objectives: Are they SMART?

SMART analysis refers that an analysis of the objectives on the basis of how specific,
measurable, achievable, realistic and timely the objectives are. So, it is clear that, SMART
objective has got five areas- Specific, Measurable, Achievable, Realistic and Timely

Evaluating Objectives: Are they SMART?

First of all, it must for an organisation to understand that whether the goals or objectives are
specific or not because without proper understanding and clear view about the objectives of
the organisation, it is not possible to design any strategy for an organisation. Besides, specific
objectives can help the Nestle to accomplish it more effectively by collecting required
resources and designing proper strategies. Nestle has set its objective to increases its market
share, relationship with customers, creating brand value more, enhance brand images and
overall creating competitive edge over the competitors because they are really important for
sustainable growth for an organisation. So, it can be said that the objectives of the Nestle are
specific enough.

Slide 4: Evaluating Objectives: Are they SMART? (Continued......

Most importantly, to be successful in the market, it is must for the organisation to adopt in
designing measurable objectives, which will help organisation to understand and measure the
time to time the effectiveness of the objectives. Measureable refers the numerical meaning
and numerical expression of the organisational objectives and aims. Besides, measurability
also refers the meaningfulness, manageability and measurability of the organisational
objectives. Nestle is facing problem of boycotting the infant foods, which is really a great
threat for the organisation. So, it will face numerical problem only when the LDC countries
consumers will begin to reject the products. Then it will heat the performance of the
organisation and Nestle knows that if it loses market share due to rejection the amount will be
more than 1 billion dollars. Besides, it can lose market if it proves the products are unhealthy
and unsecured. So actually it is not and Nestle has designed its strategy to tackle the situation,
therefor it can be said that the objectives are meaningful, manageable and overall
measureable. Most importantly, to be successful in the market, it is must for the organisation
to adopt in designing measurable objectives, which will help organisation to understand and
measure the time to time the effectiveness of the objectives.
Achievable refers the position and ability of the objectives to be realistic and practical in the
current market condition. To make the objectives achievable in the current market scenario,
nestle needs proper resources, organisational ability, employee commitment level, proper
knowledge and technical ability. Nestle has got all of them and the objectives are also
achievable because Nestle Knows very much how to sustain in the market and how the create
brand images which it learned from the previous market experience because Nestle is doing
business all over the world. So, it knows best what steps can be effective in which situation.
The inbound and outbound logistics, human capital and financial resources of Nestle are
adequate to evaluate and attain the objectives set by researcher and act upon them to reduce
the impacts of any negativity.

Slide 5: Evaluating Objectives: Are they SMART? (Continued......

Relevant refers the suitability, action-ability and perfection of the objectives according to the
created situation and how much it effective in occurred perspective. The objectives that are
designed for the Nestle are perfect for the situation and I think most suited condition to
improve the situation. For avoiding any contingency from the rejecting trend of the infant
foods, it is must to create awareness about the brand and increase brand image by eradicating
misconception of the customers. Customer loyalty is the most important thing for holding the
current market position and earning more market share which can make the Nestle more
sustainable in the market. Most important thing is creating good relationship with the
customers, which can help to maximize the power of the company and influence over them. .
Besides, if the objectives can be attained, it will help the organization to design its strategic
plan in terms of marketing, manufacturing and promoting the product that has caused Nestle
lose its competitive edge.

Timeliness is the most important thing and objectives must be appropriate the with the
timing. Timely refers exact execution according to the time and implementing the strategy on
high time. The objectives that are designed are timely and appropriate for the situation
because proper steps to create awareness about the misconception are not taken right now, it
will be damaging for the organisation and its brand image. Client problems need to be solve
within due time otherwise it may kill significant market share. Nestle has set 3 month time to
get the result of the proper implementation of the objectives. So, it can be said that the
objectives has time limit and it has passed the criteria of timely.

Slide 6: Appropriate strategy to achieve the objectives

Achieving objectives are the real challenge for an organisation because designing plan is
theoretical and conceptual activities but achieving is realistic and it needs to deal with the real
market scenario. Author has suggested two strategic model for the Nestle to implement and
makes the objective realistic and achieve the desired the goals. The models are
I.
II.

Popularity Positioned Product (PPP) Model

Ethical Marketing

Popularity Positioned Product (PPP) Model:

PPP model is actually developed by the researchers of Nestle and covers the three important
areas to achieve the objectives by earning popularity, market position and getting products
sells. Key issues that the model focuses on are:
i.
ii.
iii.
iv.
v.

Understanding the needs of the consumers

Aligning quality, taste and nutrition with highest priority on product safety
The product must create value for the consumers for the money they pay
The product must be financial viable and
The product must create value for the organization as well.

Nestle uses the PPP model because it earns it 40% of the revenue and sales from the LDC
countries by creating popularity, position and selling products in the market. This model has
been successful one for the company in growing its business in different geological locations.

Slide 7: Factors to consider in implementing PPP

While implementing the PPP models, key factors that has to be keep in mind includes the
following issues:
i.

Product quality: The infant formula has to be good enough to be considered as a

replacement of breast milk. Since the infant milk can be used by mixing them with
water and the water is highly contaminated and the scarce water level may also

ii.

degrade the quality.

Pricing: The price of newly prioritized product that is infant formula has to be

iii.

affordable and reasonable and the standardization of the product has to be considered.
Product Packaging and Nutrition value: the product needs to be packaged in such a
way that it must ensure that the nutrition value of the infant formula will not be

iv.

lessened.
Branding and communication: Nestle is the leading brand in food, nutrition and
wellness business and it has to maintain the brand reputation and thus far the company
has to reach and communicate different level of consumers and convince them

v.

regarding the brand.

Market positioning and route to market: The market positioning has to be designed
keeping in mind three types of consumers that are premium consumers, mainstream

vi.

consumers and low income group people

Partnership and co-operation: the company needs to develop and improve relation
with the government of those countries especially in Sierra Lion, Ethiopia and

vii.

Zimbabwe.
Changing the mindset of the consumers: Appropriate marketing strategy has to be
used in order to change the negative mindset of the consumers and to gain the
acceptance and popularity of the product back in those LDCs.

Slide 8: Ethical Marketing

Ethical Marketing:
Ethical marketing is the process of making marketing strategy in such way which will follow
proper business ethics and the implication of marketing strategies and tools must reflects
ethics in its conduction. For managing the cliental problem, nestle must conduct its all
activities ethically make all the customers understand that this company is fully ethical and
all the rumour are baseless.
Factors to consider in ethical marketing:

Proper standard must be followed for marketing communication tools. The advertisement
must contain true messages, context and content. Ethics must be implied on marketing by the
marketers. Privacy of the customers must be maintained and culture and value of customers
must be protected. Legal and others health related issues must be followed properly. Special
consideration and emphasis must be given on quality of products, packaging and brand value.

Slide 9: Implication of Ethical marketing:

No strategy is implemented by itself and also no strategy implemented without considering
some factors. So, implementing ethical marketing Nestle needs to follow some steps. They
are given following:
An ethical marketing program consists of the following steps:
i.

Proper analysis of the company needs to be done for better understanding the current

ii.

position and then steps can be taken to implement ethical marketing

Before implementing the ethical marketing, the available information about the

iii.

market and competitors must be analysed.

Customers are the main elements of the market and they need to be assessed for

iv.

making proper ethical marketing implementation.

It is not possible to advertise all the features and proposition, so Nestle needs to

v.

consider which one will be most appropriate for the situation.

Leveraging the capitol of ethical decisions: The ethical choices made by Nestle have
to be highlighted in order to improve public relations.

Slide 10: Project Budget

In order to imply two models described above, the estimated project budget is given below:
For implementation of the described two models, project estimation is made on the basis of
the assumptions and it is given below:
Assumptions (The amounts are in hundred thousand $):
Initial Cash Investment
Expected rate of return
Discount Rate
Growth rate

$1700
22.00%
11.00%
20% in first year and 15 % in year 2, 4% in third
year and 5% constant growth afterwards in sales

The expected ROI is 22% after considering that company will generate profit on the range of
18% to 23% in the fiscal years of 2015-2019. The cost of debt in the market was 10% hence
the discount rate is estimated as 10%.

Forecasted cash flow for next four years based on the cost in 2015:

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